Welcome to Zamfara blog exam updates page where we answer the question: what is international trade? Outline five problems limiting internal trade in Nigeria and identify four importance of internal trade in Nigeria.
What is international trade in geography?
Internal trade refers to the buying and selling of goods and services within the geographical boundaries of a country. It involves the exchange of goods and services between different regions, states or cities within the country.
Outline five problems limiting internal trade in Nigeria
[PICK ANY FIVE]
(i) Poor infrastructure: Nigeria’s poor road network, insufficient transport systems, and inadequate storage facilities make it difficult to move goods from one location to another, resulting in delays, high transportation costs, and damage to goods.
(ii) Regulatory challenges: The lack of a transparent and consistent regulatory framework for internal trade in Nigeria has led to a proliferation of informal markets and smuggling. This results in unfair competition for formal businesses, loss of government revenue, and reduced consumer protection.
(iii) Multiple taxation: The multiplicity of taxes imposed on traders, including local government levies, state taxes, and federal duties, makes trading in Nigeria very expensive, reducing profitability for traders.
(iv) Inadequate access to credit: Many traders in Nigeria do not have access to affordable credit, making it difficult for them to expand their businesses, meet their financial obligations, and access new markets.
(v) Corruption: Bribery and extortion of traders by government officials, security forces, and market leaders have been a persistent problem in Nigeria, discouraging many from engaging in formal internal trade.
(vi) Insecurity: Insurgency, banditry, and other forms of violence in different parts of Nigeria have adversely affected internal trade, discouraging traders from entering certain regions, causing loss of life and property, and disrupting supply chains.
Identify four importance of internal trade in Nigeria
(i) Economic growth: Internal trade drives economic growth by promoting the exchange of goods and services between regions, stimulating competition, encouraging innovation, and creating jobs.
(ii) Poverty reduction: Internal trade provides income and employment opportunities for many Nigerians, particularly those in the informal sector, helping to reduce poverty in the country.
(iii) Regional integration: Internal trade promotes regional integration by encouraging the exchange of goods and services between different regions, enhancing economic cooperation and social cohesion.
(iv) Enhanced food security: Internal trade promotes access to food in different regions, ensuring that people have enough food to eat, no matter where they live. This is particularly important in times of food shortages or when certain foods are unavailable in a particular region.
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